The Department for Work and Pensions (DWP) has provided an update on new anti-fraud measures, detailing which groups could be affected by upcoming benefit fraud investigations. The new legislation will give officials greater powers to request information from various institutions to identify incorrect benefit claims.
Who Could Be Targeted in DWP Fraud Checks?
The new legislation, currently being debated in Parliament, will allow the DWP to request detailed information from organisations where fraud or overpayment is suspected.
- Conservative MP Rebecca Smith questioned whether these new powers would extend to institutions such as:
- Schools and education institutions
- Insurance companies
- Water companies and utility providers
- DWP Minister Andrew Western confirmed that most organisations could be asked to provide information unless the data falls under certain exemptions.
“In essence, anybody is in scope for this power – for a request for information – unless they are withholding exempted information.” – Andrew Western, DWP Minister
Who Is Exempt from DWP Information Requests?
Some data sources will not be included under the new rules. Exemptions include:
Legally privileged material (e.g., confidential conversations with lawyers)
Information that could lead to self-incrimination (for recipients and their spouses or civil partners)
Records from free advice or advocacy groups (such as Citizens Advice)
Sensitive personal records under the Police and Criminal Evidence Act 1984, including:
- Medical records (physical or mental health)
- Human tissue data
- Confidential journalistic materials
Aside from these exemptions, most organisations that hold relevant information could be asked to provide data during a DWP investigation.
DWP to Gain Powers to Check Bank Accounts
One of the most controversial aspects of the new legislation is the power to access bank account details to verify benefit eligibility.
- Banks and financial institutions may be required to share information to check if claimants meet the requirements for:
- Universal Credit
- Employment and Support Allowance (ESA)
- Pension Credit
- This would help detect fraudulent claims and identify overpayments.
However, critics argue that this could lead to mass financial surveillance.
Privacy Concerns: ‘Unprecedented Financial Surveillance’
Legal experts and privacy advocates have raised alarms about the scope of the new DWP powers.
- Jasleen Chaggar, legal and policy officer at Big Brother Watch, called for the bank account monitoring measure to be removed.
- She warned that these “bank spying powers” could lead to:
- Mass surveillance of all citizens, not just benefit claimants.
- Algorithmic software scanning bank accounts, flagging potential fraud.
“These really are unprecedented financial surveillance powers. There are no other laws like this in this country. It is not just benefits claimants who will be targeted; everyone’s accounts will be scanned.” – Jasleen Chaggar, Big Brother Watch
While the DWP argues that these bank checks will only be used for fraud prevention, concerns remain over privacy violations and potential overreach.
The DWP’s new anti-fraud legislation is set to bring significant changes to how benefit claims are monitored. While it aims to reduce fraud and incorrect payments, critics warn that the broad scope of financial surveillance could affect all citizens, not just those on benefits.
As the bill progresses through Parliament, there will be continued debate on how much power the DWP should have when investigating benefit claims.
